Having insurance is crucial. Life is unpredictable and problems do not knock on the door before arrival. Insurance offers security during difficult times and helps in overcoming the tough phase easily and quickly.
The two main and biggest insurance companies are Geico and State Farm homeowners insurance.
Geico vs State Farm Homeowners Insurance
The difference between Geico and State Farm homeowners insurance is that Geico is a private auto insurance company in the United States while State Farm insurance is a private auto insurance, property insurance company in the United States.
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Geico was found in 1936. The full form of Geico is Government Employees Insurance Company. It is the second-largest insurance company. The headquarters of the company is in Maryland.
The CEO of the company is Todd Combs. It is a subsidiary company of Berkshire Hathaway. The famous slogan of Geico is “fifteen minutes could save you 15%”.
On the other hand, State Farm insurance was found in 1922. It is the largest insurance company in the United States. The headquarters of the company is in Bloomington in the United States.
The CEO of the company is Michael L. Tipsord. The famous slogan of State Farm is “like a good neighbor, State Farm is there”.
Comparison Table
| Parameters of Comparison | Geico Insurance | State Farm Homeowners Insurance |
|---|---|---|
| Origin | In 1936, in San Antonio and the United States | In 1922, in Bloomington of United States |
| Founders | Leo Goodwin and Lillian Goodwin | George J. Mecherle |
| Type | Auto insurance which is a subsidiary of Berkshire Hathaway | Private insurance company |
| Premium rates | The premium rates are lower and cheaper | The premium rates are higher and expensive than GEICO |
| Services | Auto and property insurance | Auto insurance, property insurance and services in banking, mutual funds, and investing |
What is Geico Insurance?
The headquarters of Geico is in Chevy Chase in Maryland. Geico is a subsidiary of Berkshire Hathaway. It has provided coverage to over 24 million vehicles. There are over 15 million policyholders of Geico.
The local licensed agents and representatives of Geico are called Geico Field Representatives. Apart from auto insurance, Geico also offers property insurance. Geico is found in the year 1936 by Leo Goodwin and Lillian Goodwin.
They started the Geico with their own money which was around $25,000.
Though Geico has the word “Government”, in its name, it is a private corporation. The headquarters was shifted to Washington DC in 1937 because Washington has the highest population of Federal employees.
Geico has sponsored Motorsports since 2008 and also PPL (Pro Pulling League). The market of Geico has grown over 50 times. The mode of dealing with customers is through the internet.
Geico is considered the second-largest private company for auto insurance. Geico spends around 7% of its revenue on advertising and promotion. The tagline of Geico in the advertisement is “so easy, a caveman could do it”.
Geico also uses stories from the customers to portray trust.
What is State Farm Homeowners Insurance?
State farm homeowners Insurance is a private insurance company with its headquarters in the United States. It was found in 1922 by George J. Mecherle. It has over 80,000 employees.
Apart from insurance, it also provides services in banking, mutual funds, and investing. The banking sector opened in the year 1999 and the operational services are carried out by the subsidiaries.
State Farm is considered the largest auto, casualty, and property insurance company in the United States. The licensed agents of State Farm are called captive agents. They are entitled to the sale of only State Farm products.
State Farm has several advertisement and promotion campaigns. The first premiered as “Get to a Better State”. The logo of State Farm is a red tri-oval logo that is interlocked.
The oval figures have three words over them – auto, life, and fire. The logo has been updated and revised several times. The present CEO of State Farm is Michael L. Tipsord.
State Farm owns numerous subsidiaries. The common subsidiaries among them are –
- State Farm fire and casualty company,
- State farm life and accident assurance company,
- State farm county mutual Insurance company of Texas,
- State farm general insurance company, state farm bank, state farm Lloyds,
- Dover Bay specialty insurance company, state farm international service,
- State farm VP management corp
Main Differences Between Geico and State Farm Homeowners Insurance
- Geico has lower premiums and various policies for drivers while stare farm has a higher rate of premiums with exclusive features comparatively.
- Geico has better customer service with instant solutions and high customer satisfaction while State farm has moderately controlled customer service and comparatively low customer satisfaction.
- Geico is the second-largest insurance company in the United States while State farm is the largest insurance company in the United States.
- Geico is a subsidiary of Berkshire Hathaway while State farm owns numerous subsidiaries.
- Geico caters only to the auto insurance and property insurance domain while state farm caters to various domains like auto insurance, property, and services in banking, mutual funds, and investing.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
